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Cost of Senior Living

How can long term care insurance help seniors plan for their futures?

Cost of Senior Living

Understanding the Cost of Senior Living & Long-Term Care Insurance

Did you know you have a 68 percent chance of needing some form of long-term care after age 65? According to the American Association for Long-Term Care Insurance, the number of people using paid, long-term care services in any setting (at home, assisted living, or skilled nursing facilities) will double from 13 million in 2000 to 27 million by 2050.

The truth is, long-term care is a topic that should be discussed and understood early, especially as you approach retirement age and your chances of needing some form of long-term care increase.

What is Long-Term Care Insurance?

Long-term care insurance, (LTC insurance, LTCI or long-term health insurance), helps cover the cost of support and services you may need as you age, such as the following:

  • Adult day services
  • Assisted living
  • In-home healthcare
  • Memory care and support
  • Respite care
  • Skilled nursing care and rehabilitation

Keep in mind that Medicare only pays for a short-term stay in a skilled nursing facility after you have been hospitalized for at least three days. Then, it will pay for the next 20 days of care needed. That’s why long-term care insurance is different from traditional healthcare insurance, which typically does not cover the above services.

Now that you know there is a strong possibility you or a loved one may require some form of long-term care in the future, even if years away, it’s smart to start learning about your options now. That way if the time comes to choose long-term care insurance, you have an idea of what to expect.

How Much Does Long-Term Care Insurance Cost?

It’s difficult to give an exact number for the cost of long-term care insurance because it varies from person to person depending on the following factors:

  • Your age and health status. It will benefit you to purchase long-term care insurance when you are younger, before serious health issues arise. The older and less healthy you are, the more expensive your long-term care insurance policy will be. It’s also not unusual for certain pre-existing conditions to disqualify you from coverage, so to play it safe, seek coverage sooner rather than later.
  • The amount of coverage you choose. Not every person chooses the same level of coverage. Some may want more coverage than others. Some factors that can impact the amount of coverage you receive include fewer restrictions on the types of care covered, protection against inflation for cost of living, or even setting limits on the daily and lifetime benefits.
  • The insurance company you go with. Just like with traditional health insurance, every insurance company offers different policies with different rates. Do some comparison shopping by getting several quotes to help you choose the right plan at a cost that works for your budget. And talking to a financial advisor isn’t a bad idea, either.

There are certainly pros and cons to long-term care insurance, and it’s not for everyone. Some may say it’s not as affordable as they’d hoped, but it’s worth looking into. If you find that doesn’t break the bank for yourself or a loved one, it may be a great way to tackle new costs from long-term care. And if that’s the case for you, look for a policy with a monthly premium at least 5 percent less than your monthly income – this is a smart strategy for choosing long-term care insurance, according to financial experts.

Here to Help You Navigate Senior Living Costs

Those of us at The Atrium at Navesink Harbor understand how confusing and even overwhelming it is to learn about senior living costs and long-term care insurance. We will do our best to make the process seamless and stress-free. This is why we offer our Lifecare contract, to help protect your future and keep your finances predictable. If you have questions about our senior living options or would like more information, contact us today.

Need information? Right this way.

outdoor area at The Atrium at Navesink Harbor

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